Where did our clients invest in April?

Holding on to the top spot for the first four months of 2018, Terry Smith’s Fundsmith Equity has proved ever-popular with Bestinvest clients. The companies he invests in are mostly large multinationals, operating in areas such as consumer staples and services, industrials and technology.

Now approaching its sixth birthday, this was the most popular Global fund on our list. It’s highly experienced management duo of Michael Lindsell and Nick Train target capital and income growth from a concentrated portfolio of equities which they deem to be durable and cash-generative.

A non-mover from March, the HSBC American Index fund is a simple and low-cost way to invest in large-cap US equities, specifically those of the S&P 500 index. The index consists of large, well-known companies with global businesses, providing investors with geographic and sector diversification.

Moving up two places, this fund is run by a strong team of emerging markets specialists with Nick Price at the helm. Price has an accountancy background and scrutinises companies’ reported numbers, which can be helpful in picking companies with robust business models, where share prices are typically more stable.

This fund is predominantly invested in UK-listed companies, although many of these generate revenue across the globe, such as GlaxoSmithKline. In addition to its exposure to larger companies, the fund typically has a bias towards small and medium-sized businesses.

This fund focuses mainly on larger companies in Asia and Australasia, excluding Japan, with a focus on high-quality, shareholder-friendly businesses. Few companies pass manager David Gait’s stringent criteria, but those that do typically stay in the portfolio for many years.

Hideo Shiozumi’s Legg Mason Japan Equity was another non-mover in April. The overall aim of the fund is to produce a capital return above the TOPIX index over a full market cycle. Shiozumi attempts to do this by specialising in smaller and mid-cap companies.

Richard Colwell’s Threadneedle UK Equity Income fund moved up by two places in April and has commonly appeared inside our top 10 list throughout 2018. Colwell and his team select portfolio companies by focusing on key themes driving the market at any time.

This fund was the highest new entry on our list. Also run by Nick Train, the Lindsell Train UK Equity fund invests in a concentrated portfolio of companies with durable business models that he believes will still be trading profitably in 20 years’ time.

Slipping down one place on our list, Dave Dudding and Mark Nichols’s fund aims to achieve capital growth by investing in a relatively concentrated portfolio of continental European equities. It’s a popular choice for investors wanting European exposure and consistently appears in our top 10.

Use up your allowances

Your allowances restarted on 6 April. This tax year you can invest £20,000 into an ISA and up to £40,000 into a pension. Why not use your allowances with our Stocks & Shares ISA or Best SIPP? All of the above funds (plus thousands more!) can be purchased within both accounts.

Speak to us

For more information on our Stocks & Shares ISA, Best SIPP or any of these funds, get in touch by calling us on 020 7189 2400 or emailingbest@bestinvest.co.uk.

Important information

We aim to provide investors with information to help them make their own investment decisions although this should not be construed as advice or an investment recommendation. If you are unsure about the suitability of an investment or if you need advice on your specific requirements, we strongly suggest that you consider professional financial advice.

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. Different funds carry varying levels of risk depending on the geographical region and industry sector in which they invest. You should make yourself aware of these specific risks prior to investing. Underlying investments in emerging markets are generally less well-regulated than the UK. There is an increased chance of political and economic instability with less reliable custody, dealing and settlement arrangements. The market(s) can be less liquid. If a fund investing in markets is affected by currency exchange rates, the investment could both increase or decrease. These investments therefore carry more risk. Due to their nature, specialist funds can be subject to specific sector risks. Investors should ensure they read all relevant information in order to understand the nature of such investments and the specific risks involved.

SIPPs are not suitable for everyone. If you don’t want to invest across different asset classes or don’t think you will make use of the investment choices that SIPPs give you, then a SIPP might not be right for you.

The value of your investment can go down as well as up, and you can get back less than you originally invested.

Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Bestinvest, upon request and on a fee basis. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.